How Much Does It Cost to Rent a Food Truck?

With the smell of delicious food and the excitement of people waiting to get their hands on a tasty meal, food trucks have become a popular dining option. It’s no surprise that a lot of business-minded foodies want to try their hand at starting a food truck.

If you’re one of those considering this restaurant concept, you may be torn between renting or buying a food truck. Often, renting is a practical first step, especially if you’re still testing the waters or want to shell out as little investment as possible.

Before you hit the road, let’s break down how much it costs to rent a food truck, along with the factors that affect rental prices.

Average food truck rental cost

On average, renting a food truck costs between $2,000 to $3,000 per month, with a lease of six months or more. Take note that the exact rental cost may fall above or below the range due to various factors, like the truck’s size, equipment needed, parking location, and duration of the lease.

Other initial costs to consider include a security deposit, where you pay one to three months’ rent ahead. Most rental owners require one as protection against potential damages or missed rent payments.

So, if the monthly rent is $2,500, you might need to pay one month’s rent plus another month or two as a security deposit, amounting to $5,000 to $7,500 upfront.

Factors that affect the pricing of food truck rentals

Your food truck’s size, equipment, type of cuisine, lease, and location play a big role in how much you’ll end up paying each month for rent. It’s good to do your research so that you can set an accurate budget as you start your food truck business.

Truck size and equipment

Food trucks come in various sizes, each accommodating different business needs. Smaller options, like food carts or trailers, are compact and ideal for limited menus or specific food items. These are generally more affordable to rent, making them suitable for startups or businesses testing the market.

On the other hand, full-sized food trucks offer ample space for a broader menu and more complex food preparation. However, this increased space typically comes with higher rental costs.

The equipment included in a food truck also significantly affects its rental price. In fact, it can cost around $25,000 to $100,000 to furnish a fully operating vehicle.

Trucks equipped with specialized appliances like built-in grills, fryers, or refrigeration units enable a diverse menu but increase rental costs. For example, a Texas food truck rental company offers $3,750 per month for a long-term lease.

The price might be a bit higher than the average, but the truck already comes with a professional kitchen, including a hood fan, two fridges, a sandwich prep area, a 36-inch flat frill, burners, and two deep fryers.

These inclusions offset the rental cost since you would otherwise need to purchase these items separately, allowing you to save on capital.

Restaurant type

The type of restaurant you have in mind also affects rental costs because you might need specialized equipment and setup. Niche food trucks, such as those serving tacos, barbecue, or desserts, often have tailored interiors and equipment to meet specific culinary needs.

For instance, a taco truck would need griddles and warming stations, while a BBQ truck requires smokers and large grills. Other unique and fun food truck ideas, like a mobile milkshake or ice cream truck, would need freezers and soft-serve machines.

Before you commit to a food truck rental, make sure you know the specific equipment requirements for the dishes you want to serve. Consider talking with other food truck owners or rental companies who can provide insights into the most cost-effective setups.

Lease duration and terms

Expect higher rent if you plan to take on a short-term lease, which is just around one to three months. Although it lets you test the waters and see whether the food truck concept works, leasing companies may charge a premium to offset the increased risk and administrative costs associated with shorter commitments.

Longer leases, typically six months or more, often provide more favorable rates, with some going just over $1,000. Rental companies prefer those who plan on using their food truck for longer because they won’t have to keep on looking for tenants.

Committing to a longer lease term can also be advantageous when negotiating rental rates. You may be able to reduce monthly payments through sliding scale pricing, where the monthly rate decreases as the lease duration increases.

Additionally, you might negotiate perks like maintenance support or equipment upgrades as part of the long-term rental agreement. Always read the fine print and understand all terms before signing to ensure you’re getting the best possible deal for your food truck rental.

Location

Although a food truck is mobile, you still have to consider where you’ll park the vehicle and serve customers. Monthly food truck parking rates fall between $500 and $1,000.

Urban areas, especially major cities like New York and Los Angeles, often have higher rental prices due to increased demand and operational expenses. For instance, food truck operators in New York City face additional costs from congestion pricing, with fees reaching up to $21.60 during peak hours.

On the other hand, suburban and rural locations may offer more affordable rental rates but could present challenges like lower foot traffic and limited event opportunities.

Commissary kitchen

If you run a food truck, you’ll need to rent a commissary kitchen to prepare, cook, and store your products. Using one makes sure your business stays compliant with health regulations.

On average, commissary kitchen hourly rates range from $15 to $40. Some kitchens offer monthly memberships, with fees ranging from $250 to $1,250, depending on the package and services included.

Licenses and permits

Food truck operators must have the necessary food service permits and health department certifications to serve food legally. These permits show that you adhere to food safety standards by passing health inspections.

For example, in Midland, Michigan, starting May 1, food trucks need to acquire annual operating permits and undergo inspections by the Midland Fire Department, with associated fees totaling $100.

In New York City, operators must secure a mobile food vendor personal license, a mobile food vending unit permit, and a health department permit, among others, with costs ranging between $25 to $280 for each document.

Insurance

You need to protect your food truck from potential risks like accidents, equipment breakdowns, and liability claims. Depending on how much coverage you have, monthly insurance fees can range from $200 to $500.

General liability insurance costs around $42 per month, while a business owner’s policy (BOP) is around $84. There’s also workers’ compensation insurance ($78), commercial auto insurance ($170), and liquor liability insurance ($145).

Initial inventory

You need ingredients, packaging materials, and other essentials to start serving delicious food to customers. That’s why you should consider your initial inventory costs on top of your food truck rental.

Set a budget of around $1,000 to $2,000 for food costs before you open your food truck. This can include meat, fresh produce, condiments, and other specialized ingredients unique to your cuisine. You should also factor in storage containers, disposable utensils, napkins, and cleaning supplies.

Maintenance

Typically, the truck owner handles regular maintenance tasks such as oil changes, brake inspections, and tire rotations. However, as a renter, you’re still responsible for taking care of the vehicle.

As such, you should have a budget of around $500 to $1,000 per month for maintenance in case you encounter unexpected repairs. Make sure you discuss with the food truck rental company clearly what your specific responsibilities are as a renter.

Explore your food truck rental options

If you’re excited about starting your food truck business but don’t have enough initial capital to purchase a truck outright, consider renting at first. It allows you to gather real-life experience about what it means to run a food truck while still giving you the freedom to explore different markets and cuisines.

Then, as you save and become better in the business, you can slowly work toward buying your own food truck. To achieve this, you need the right tools to keep things organized, stay on budget, and manage your team with less stress.

Use 7shifts to track hours, manage tips, and keep operations smooth so you can focus on growing your food truck and driving your business to success.